ANNAPOLIS, Md., Dec 20, 2004 -- CompuDyne Corporation (NASDAQ:CDCY), an industry leader in sophisticated security products, integration and technology for the public security markets, announced today that its Public Safety & Justice Unit has acquired Copperfire Software Solutions of Cupertino, California.

Copperfire provides customized report writing and forms generation software designed specifically for public safety and justice agencies. The software automates an agency's current business practices, turning hard copy forms into digital images, to create a paperless report writing system. A context-sensitive, interactive "wizard" pre-loads data fields and builds a list of additional required forms based on the type of incident and the information entered by the officer. Data is entered via keyboard, mouse, voice activation or by pen-based technology and is seamlessly transferred between forms.

"Copperfire software represents one of those rare technological advances that make work both simpler and more efficient. Our first responders and their support personnel can now work with the forms they have long been familiar with in an automated, paperless environment - in the office, in the vehicle, or in the field," said Marty Roenigk, Chairman and CEO of CompuDyne. "The entry flexibility is a remarkable advance, extending to pen-based and other technologies. We believe Copperfire has broad applications beyond the public safety field."

In addition to automating local agency forms, the software captures electronic signatures and automates required forms from the county and state to provide complete electronic workflow management. Automating agency workflow with this technology eliminates redundant data entry, increases information accuracy, promotes standardized data collection and dramatically reduces report writing time. "By reducing the time spent at a desk writing reports, the Copperfire solution puts public safety officers back where they belong - in the community," said Scott Reese, President of Copperfire Software Solutions. "We have developed a set of unique tools that will revolutionize public safety report writing and we look forward to the future as part of CompuDyne Public Safety & Justice."

"Developed using Microsoft .NET(R) technology, the open design of the Copperfire software will allow us to implement automated forms processing and workflow management across our entire product suite, streamlining the work and reducing the data entry overhead for our clients," states Dan Crawford, CEO of CompuDyne Public Safety & Justice.

The terms of the acquisition were not disclosed.

The acquisition of Copperfire, which has only recently emerged from the development stage, is expected to generate modest revenues in 2005. It is expected to be accretive to CompuDyne's earnings for the full year 2005 before any non-cash purchase accounting adjustments.

CompuDyne Public Safety & Justice is comprised of best of breed companies, making it a dominant player in the public safety and security systems market. Tiburon, an industry-leading provider of automated public safety and justice systems for law enforcement, fire & rescue, corrections and justice environments, is complemented by advanced inmate and Electronic Medical Records (EMR) management systems developed by CorrLogic, industry-leading fire and EMS records management software systems from 90 Degrees, and, now, dynamic Field Based Reporting (FBR) technology developed by Copperfire. By bringing these companies and products together, CompuDyne Public Safety & Justice provides technologically advanced, comprehensive solutions to the public safety and justice market.

Certain statements made in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including those statements concerning the Company's expectations with respect to future operating results and other events. Although the Company believes it has a reasonable basis for these forward-looking statements, these statements involve risks and uncertainties that cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors which could cause actual results to differ from expectations include, among others, capital spending patterns of the security market, competitive factors and pricing measures, regulatory requirements, the Company's ability to secure new contracts, costs related to potential acquisitions, the level of product returns, the amount of remedial work to be performed, and the risks inherent in CompuDyne's business and future uncertainties which are further described in its filings with the Securities and Exchange Commission, such as the Company's Form 10-K, Form 10-Q, and Form 8-K reports.

SOURCE: CompuDyne Corporation

Investor Relations:
Geoffrey F. Feidelberg, 410-224-4415 ext. 313
investors.relations@compudyne.com